New SRS 5.1 Surround Allows Video Games to Be Delivered from OnLive® to TVs, Computers and Mobile Devices in Surround

2011 International CES

SANTA ANA, Calif.–(BUSINESS WIRE)–SRS Labs, Inc. (NASDAQ: SRSL), officially recognized as one of America’s Greatest Brands and the industry leader in surround sound, audio and voice technologies, today announced that it has partnered with cloud gaming pioneer OnLive Inc. to deliver top-tier video games in rich 5.1 surround sound to any compatible consumer electronic device through the use of SRS 5.1™ Surround Sound, an advanced, format-agnostic, easy to deploy and manage end-to-end surround sound technology solution used for content creation, transmission and consumption. OnLive users will receive SRS 5.1 Surround as an automatic free update in early 2011.

“We are very excited that OnLive selected SRS 5.1 as its format of choice for encoding video games in 5.1 surround sound,” said Chuck Cortright, Vice President of New Business Development for SRS Labs. “On-demand gaming communities and services like OnLive, which provide instant access to great content, are just one of many practical applications for our SRS 5.1 surround sound encoding and decoding solutions. Gamers will absolutely love the more immersive and lifelike experience of playing their favorite games in surround sound over standard stereo.”SRS 5.1Surround Sound does not require a proprietary decoder for the receiving device and requires no extra bandwidth, as it piggybacks on normal stereo transmission. This provides OnLive with the right tool to create and deliver true, high-quality streamed surround sound encoded content across TVs, Mac® and PC computers, iPad®, Android™ and similar mobile devices that can tap into a broadband network. Because millions of TVs, A/V receivers, PCs and mobile devices today feature one or more SRS audio solutions such as Circle Surround®, TheaterSound™, StudioSound HD™, TruSurround® and Premium Sound™, every one of these CE devices are natively equipped with the capability to decode SRS 5.1 surround encoded content, resulting in a “surround everywhere” entertainment experience.

Additionally, for devices unable to decode SRS 5.1, the encoded content will default back to stereo and can still be heard, which is not the case with traditional surround codecs that require the appropriate decoder for outputting sound.

“OnLive’s state-of-the-art video games provide incredibly realistic experiences, and a core part of the user’s immersion into these games is a rich surround sound environment,” said Steve Perlman, Founder and CEO of OnLive. “SRS 5.1 not only achieves superb surround sound fidelity through OnLive, but it does so with simplicity and compatibility across all devices OnLive supports—from handheld mobile devices, to PC/Mac, to TVs with high-end home theater systems—achieving the best audio experience each device can deliver. We are delighted to partner with SRS to provide OnLive users an outstanding cross-platform compatible surround sound experience.”

SRS 5.1 Surround Sound features SRS’ Circle Surround®, an advanced matrix surround sound processing engine. The Circle Surround engine is a highly versatile multichannel audio encode and decode system that’s capable of supporting a wide range of surround sound creation and playback applications. With SRS 5.1, surround sound is made available without sacrificing the 2-channel reach and experience. Some of the other major benefits of SRS 5.1 include:

Ensures smooth steering and full bandwidth for a seamless and immersive surround environment

Is backwards compatible with legacy matrix decoders and stereo

For more information about SRS 5.1 Surround Sound, please download the technology brochure at http://bit.ly/ijRuLc. SRS Labs and OnLive will be demonstrating SRS 5.1’s capabilities during CES 2011. To meet with SRS Labs during CES 2011 and learn about SRS 5.1 and other SRS audio and voice technologies, please contact us at [email protected]. To get an OnLive SRS 5.1 demonstration, contact [email protected], or try the SRS-enabled OnLive Game Service for free at www.onlive.com.

About SRS Labs, Inc.

Founded in 1993, SRS Labs is the industry leader in audio signal processing for consumer electronics across the four screens: TV; PC; Mobile Phones; and Automotive Entertainment Systems. Beginning with the audio technologies originally developed at Hughes Aircraft, SRS Labs holds over 150 worldwide patents and is recognized by the industry as the foremost authority in research and application of audio post processing technologies based on the human auditory principles. Through partnerships with leading global CE companies, semiconductor manufacturers, software developers, and content aggregators, SRS is recognized as the de facto standard in audio enhancement, surround sound, volume leveling, audio streaming, and voice processing technologies. SRS solutions have been included in over two billion electronic products sold worldwide including flat panel HDTVs, AV products, STBs, PCs, mobile phones, and automotive entertainment and telematics systems. For more information, visit www.srslabs.com.

About OnLive

OnLive is the pioneer of on-demand, instant-play video game services, delivering real-time interactive experiences and rich media through the Internet. With groundbreaking video compression technology, OnLive harnesses cloud computing to provide the power and intelligence needed to instantly deliver the latest, premium game titles to any HDTV via the OnLive Game System or nearly any PC and Mac via a small browser download, and on the iPad and Android via the OnLive Viewer mobile app. OnLive technology is backed by hundreds of patents and patents pending. The company is headquartered in Palo Alto, California. OnLive investors include Warner Bros., Autodesk, Maverick Capital, AT&T, British Telecommunications (BT) and The Belgacom Group. More information is available at www.onlive.com.

OnLive is a registered trademark of OnLive, Inc. All other trademarks are the property of their respective owners.

Except for historical information contained in this release, statements in this release, including those by Mr. Cortright, may constitute forward-looking statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events that are based on management’s belief, as well as assumptions made by, and information currently available to, management.While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that the Company’s goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect the Company’s actual results and may cause results to differ materially from those expressed in forward-looking statements made by or on behalf of the Company. Some of these factors include the acceptance of new SRS Labs’ products and technologies, the impact of competitive products and pricing, the timely development and release of technologies by the Company, general business and economic conditions, especially in Asia, and other factors detailed in the Company’s Form 10-K and other periodic reports filed with the SEC.SRS Labs specifically disclaims any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

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